RR Kabel, an Indian manufacturer of wires and cables, witnessed remarkable demand for its initial public offering (IPO) valued at approximately 19.64 billion rupees ($236.25 million). Data from the National Stock Exchange reveals that by the final day of bidding, investors submitted bids for 248.9 million shares, a staggering 18.69 times the 13.3 million shares initially made available.
The Mumbai-based RR Kabel, which enjoys backing from the private equity firm TPG, set the IPO price range at 983 rupees to 1,035 rupees, as per a newspaper advertisement published last week.
TPG, holding a 16.67% stake in RR Kabel, intends to sell shares valued at up to 13.35 billion rupees, equivalent to nearly 70% of its total ownership in the company, based on calculations by Reuters.
RR Kabel has outlined plans to utilize the IPO proceeds for repaying its outstanding debt, which stood at 7.77 billion rupees as of August 28, according to information provided in the prospectus.
The company’s consolidated revenue for the fiscal year 2023 recorded a substantial increase of approximately 28% to reach 55.99 billion rupees compared to the previous year, although its profit experienced a decline of over 11%.
RR Kabel faces competition from firms like Polycab India (POLC.NS) and Finolex Cables (FNXC.NS), both of which have seen their stock prices more than double this year. This surge is attributed to increased government infrastructure investments and an upswing in the real estate sector.
The RR Kabel IPO is being managed by Axis Capital, Citigroup, HSBC Securities, and JM Financial, serving as the lead book-running managers.
